Thoughtful Preparations: Media Spin Blog

On Feb. 10 Synaptics stock shares tumbled because a few Wall Street analysts rumored that Apple’s future iPods would no longer use their wheel interface. Their opinions caused a panic that brought Synaptics stock down 50% in price, from the mid $30 range to below $21. (I had to buy some at those prices!)
“Bear Stearns analyst Andrew J. Neff said Apple last week unveiled its latest PowerBook laptop computer outfitted with a TrackPad, its own touch-sensitive interface developed using chips made by Cypress Semiconductor Corp.

Further indications suggest that Apple will use its internally developed technology on the next generation of its wildly popular iPod media player, Neff said. He added that Synaptics, whose most popular design is the iPod’s scroll wheel, historically has been Apple’s sole supplier of touchpad components.”

Today Synaptics provided the much needed facts, sweet official words, dispelling the rumors.
“We have received numerous inquiries from investors and analysts regarding the use of our products in the Apple iPod. In the absence of definitive communications from Apple regarding these matters, we have not believed it appropriate to comment on unconfirmed rumors and speculation. In addition, our policy generally is not to comment on market rumors, speculation, and changes in our stock price.

We are filing this Form 8-K in order to respond to inquiries regarding recent announcements of new product introductions.

Yesterday Apple announced several new iPods and we are confirming that our interface solutions are being used in those products. As has been the case since our initial product introductions in fiscal 1996, we compete for designs on a product by product basis and have no assurances from any of our OEM customers that they will utilize our interface solutions in any of their future products.”

Apple’s iPod is so successful, Apple’s stock has doubled and is set to split, so why would they change their design? Think about it.